Recently some employers, such as GM, have told their employees that they will suspend matching their contributions in their 401(k) until the economy gets better. This is tough for employees to deal with as they are already battling rising health care cost and job cuts.
Results from a recent survey by Watson Wyatt Worldwide show that 21% of employers surveyed stated that they have raised the employee contributions for health care and another 25% said that they planned on doing the same within the next year. Additionally, 19% laid off workers and 26% will do so in the next year.
Currently, employers have been trying to use stopping or reducing their 401(k0 contributions as a last alternative. Only a small percentage has done so, however, many say that they will resort to this if this period of economic turmoil persists.
On the bright side, analysts say that individuals should keep contributing to their 401(k), and that it will pay off in the long run.
http://www.washingtonpost.com/wp-dyn/content/article/2008/10/25/AR2008102500045.html
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